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Frequently Asked Questions on VAT


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I bought my capital goods before I registered for VAT. Can I deduct input tax for them?

If a capital asset is bought before VAT registration, and tax has been paid for it, the buyer can still deduct input tax after registration. The value of the input tax deduction is capped by the asset’s net book value. The net book value must be determined in accordance with your accounting standards (for instance, straight line depreciation).

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